IMF Praises DRC’s Commitment to Road Infrastructure Investment
The International Monetary Fund (IMF) has commended the Democratic Republic of Congo (DRC) for its commitment to allocate $324 million annually over the next seven years for road infrastructure construction.
Gabriel Leost, the IMF representative in the DRC, highlighted this dedication as a significant step forward in a recent interview in Kinshasa.
The commitment is part of a contract between the DRC and the Chinese Enterprise Group (GEC), specifically through Sino-Congolese Mines (Sicomines). This initiative reflects a marked improvement compared to previous years, with the authorities having published most of the mining contracts, including the latest amendment with Sicomines.
Leost noted that the latest review ensures revenues and expenditures related to the Sicomines project are incorporated into the finance law and the amending law, thereby eliminating extrabudgetary management.
To promote transparency and accountability, he recommended rigorous parliamentary oversight and the involvement of the Court of Auditors to scrutinize investments.
He stressed the importance of annual meetings between Congolese and Chinese stakeholders to review project progress and urged the authorities to publish comprehensive reports to keep the public informed about investment advancements under this contract.
Leost also pointed out a shift in the financing structure from debt to profit sharing. “Previously, there was a loan from the Exim Bank of China, but now the arrangement resembles profit-sharing. Over $300 million annually will be allocated to infrastructure spending without accruing additional debt,” he explained.
Regarding project execution, Leost emphasized the government’s responsibility to organize and oversee work through designated agencies or the Ministry of Infrastructure and Public Works. He encouraged the government to maintain these funds in a dedicated account at the central bank.
The contract, signed at the beginning of 2024, outlines a total investment of $7 billion over 17 years, with $1.5 billion already borrowed. Disbursements for 2024 are set at $624 million, with subsequent years earmarked for $324 million annually to fund crucial road infrastructure development.
Source: CopperbeltKatangaMining
